Internal control over accounts payable is improved when:
A) Purchase orders show approved prices.
B) Informal bids are obtained.
C) Annual trial balance of accounts payable subsidiary ledgers is required.
D) Payment is made upon approval of the purchasing agent.

Question

Quizplus · Accepted Answer

Purchase orders showing approved prices help to prevent unauthorized payments, ensure that the company is paying a fair price, and keep track of the amount owed to vendors. While the other options may also contribute to control over accounts payable, they are not as effective as having approved prices on purchase orders.

Internal Control Over Accounts Payable Is Improved When